EPA e-payments for the Future presentation
Transcript of EPA e-payments for the Future presentation
Dublin 2013
e-‐Payments : Future of Parking Richard Thoma / Nigel Williams
Introduc7ons
Richard Thoma EPA e-‐payment group chair
Principal -‐ Altancard Ltd InternaBonal card payment expert (40 yrs in IT management) [email protected]
Nigel Williams EPA Policy and Strategy Commi8ee member
Principal -‐ Parking MaJers Ltd / StaBom SAS Parking Consultant (+25 yrs in parking: ex Vinci, Q-‐Park) BPA ExecuBve Council member [email protected]
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e-‐payments & parking
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Agenda
• Challenges • What is the soluBon? -‐-‐-‐> Standards • What some of our industry leaders say • EPA e-‐payments working group • Our Approach • The Key Message • Benefits
• Making it happen!
• Parking operators are obliged to invest in systems that comply with EMV (chip & PIN), PCI DSS
• They are constantly being forced to adopt new technology and processes at the whim of financial insBtuBons and payment providers
• Operators do not know which technology to choose • Operators are worried about:
• Security • AdopBng new systems • Development of mobile phone payments • Development of NFC
• ExisBng payment systems disappearing, without being immediately replaced
• PMS suppliers find it difficult to provide new methods of payments due to lack of approved payment technology
Challenges
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Standards !!
Standards facilitate interoperability and transparency What if there were no standards for baBeries???
What’s the solu7on ?
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AdopBng appropriate standards can: • Give operators confidence to define their investment strategy
with a clear roadmap • Enable suppliers to provide standardized and compliant
equipment across Europe • Allow internaBonal operators to create a single European wide
compa7ble opera7on • Help free all operators from country specific regulaBons and
allow local operators to benefit from internaBonal working standards
• Reduce costs (investment & maintenance)
Standards for parking payments ?
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• e-‐payment is a subject of increasing importance to the parking industry
• internaBonal standardizaBon of parking payment protocols will help our industry improve our services to our customers at lower costs and investment risks
Theo Thuis Chief OperaBng Officer Q-‐Park Group
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• Currently, equipment manufacturers have to meet mulBple different compliance requirements and obtain the necessary cerBficaBons (mulBple Bmes)
• This generates unnecessary costs which we have to pass on to operators
• Introducing internaBonal standards will simplify product specificaBons and cerBficaBon processes and help reduce costs
MarBn Kammler Geschäjsführer / Managing Director Scheidt & Bachmann
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By adopBng an internaBonal standard we can: • Protect our investments in new systems • « Control our industry’s future » • Help our equipment suppliers raBonalize their
own investments • Reduce unnecessary capex & reduce operaBng
costs
Peter Schneck Managing Director -‐ APCOA AG
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Torino EPA Congress : Proposal « don’t reinvent the wheel » Adopt Interna7onal Forecourts Standards Forum (IFSF) Standards for the parking industry:
• IFSF standardizaBon has been in place for almost 30 years in the oil retailers and conBnues to develop with new technologies (mobile, NFC)
• IFSF standards are implemented in all European countries
• Payments for petrol and parking are not too different
• Petrol industry is more powerful than the parking industry
• IFSF standards are accepted by Visa, MasterCard, EMV, PCI
Which standards?
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• IFSF’s standards have made it possible for the Oil retailers to process all card types iden7cally in all their countries and facilitated both cross border acquiring contracts and the interconnec7on of different Point of Sale, Card Terminal and Fuel Card systems on a very large scale indeed.
• Within the European Petroleum Retailing environment they are now the de facto EFT standards and are in use in every European Country for virtually every card scheme that allows them.
• Constant developments to handle EMV, DCC, Contactless and now also Mobile Payments and the weight placed on backwards compaBbility have been of real benefits in protec7ng this investment in standardisa7on.
Jeremy Massey Card & Security Coordinator, Statoil, Norway IFSF Technical Chair and Board Member
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Policy and Strategy CommiJee & EPA Board agreed iniBal scope and budget for the e-‐payment iniBaBve:
• IFSF / EPA negoBaBons 2012
• Preliminary invesBgaBon of technical feasibility • Signature of agreement IFSF/EPA Nov 13, 2012 gives EPA the ability
able to use payment standards from the fuel retail industry in parking
Leading operators/equipment suppliers commit support (funding + specialist staff) to the EPA working group
• Working group set up April 2013
• 3 formal working group meeBngs and many informal meeBngs
Technical verificaBon with IFSF confirms suitability of IFSF standards
What progress has been made?
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APCOA Jörg Schulik Empark Javier Rego Yañez, Luis Ramirez Interparking Olivier Maes, Maurizio Locatelli Q-‐Park Jens Zier Saba Jose Antonio Lopez Becerra Vinci Park Bachir Mokrani, Erwan Bégos Scheidt&Bachmann Stefan RüJers Skidata Stéphane Callo, Severin Strmenik WPS Keith Williams Nigel Williams EPA Policy and Strategy CommiJee Richard Thoma Chair e-‐Payments working group
EPA working group -‐ members
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The working group developed and implemented the following methodology:
Develop an analyBcal approach to evaluate if the IFSF standards meet the needs of the parking industry:
– Define relevant parking industry “Use Cases” (present and future)
and then – Map the parking industry “Use Cases” against the IFSF standards
EPA working group -‐ methodology
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Use Cases -‐ cashless payments in parking
1. Payment at Pay StaBon, 2. Payment at Exit Barrier 3. Card managed Drive in &
drive out 4. Card managed Door reader 5. ReservaBon & Web based
payments
Allowing for : • Specific tariffs per card type • Credit, Debit, Loyalty, Petrol and
Customer (private label) cards • Compliant with internaBonal
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Use Case example : Payment at Pay Sta7on
Customer Entry Exit PMS PayStaBon Card Reader
FEP
Pay before exit
Insert Card
Take Ticket
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Overview of IFSF EFT standards
FEP = Auth Syst Online
Host 2
HSM
HSM
PVVs & cards
IFSF HOST2HOST & Security
Online Host 1
HSM
Online Host 3
POS
APT
UPT
IFSF POS2FEP & Security
IFSF Key Management
Manual Cash
IFSF POS to EPS
IFSF POS to EPS
IFSF Key Management
UPT = UnaJended Payment Terminal APT = AJended Payment Terminal
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• e-‐payment is an increasingly important subject that is evolving very fast.
• We have supported and invested in the EPA Task Group because I am deeply convinced that adopBng the IFSF Standards will help us (as well as the other operators) to secure our investments and reduce our costs.
• IFSF is a true internaBonal standard which our experts strongly believe in.
Roland Cracco Managing Director Interparking
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• AdopBng the IFSF standards will give us the foundaBon we need to bring e-‐payment innovaBons to the market in the most cost effecBve and sustainable way.
• Simplifying the specificaBon and internaBonal cerBficaBon process will enable equipment suppliers to speed up the development process and reduce costs
• The whole industry can benefit from the economies of scale that adopBng the IFSF standards will bring, from cheaper payment terminals to more compeBBve rates for payment processing
Peter Peddemors Managing Director WPS
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The EPA working group was a good opportunity to work together and to elaborate payment standards in the parking industry, to which we can rely on. We are happy to share our longstanding experBse – and the benefits of the IFSF standards are clear: • ReducBon of individual investment in payment infrastructure • Less cerBficaBon and operaBonal costs • Higher security standards, higher system security
Robert Weiskopf SKIDATA Senior Vice President Car Access
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The EPA working group has done a fantasBc job! The IFSF Standards will soon be available to all our members. This will enable all of us to: • Define our future investments based on a clear roadmap • Free ourselves from country specific regulaBons on the
payments side • Request IFSF compliance in our parking equipment
tenders • Progressively reduce our CapEx and operaBonal costs
Wilfried Thierry Head of Europe Vinci-‐Park
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• Roadmap of the standards is easy to understand
• Lower ongoing costs – reduced maintenance, less breakdowns, less expensive equipment upgrades – Supplier independent – Minimum of 10 years availability of components
• IFSF Standards provide the framework to develop a tokenization standard. This will allow :
1. Card managed Drive in & drive out 2. Card managed Door reader 3. Reservation & Web based payments
Benefits of IFSF Standards
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Benefits for all EPA members Public
Authorities Vendors Operators Parking
Industry IFSF Architecture provides sound base for planning future investments and developments
✔ ✔ ✔ ✔
IFSF Architecture will facilitate (promote) interoperability ✔ ✔ ✔ ✔ IFSF Standards will make requirements definition easier and promote selection criteria refering to established standards
✔ ✔ ✔
IFSF Standards already known to most vendors ✔ ✔ IFSF Standards will help reduce development, nationalisation and certification costs
✔ ✔
IFSF Standards in line with SEPA requirements ✔ ✔ ✔ ✔ Having accepted standards will stimulate new payment product developments ✔ ✔ ✔ ✔
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What scale of benefits?
Operating savings Data collecBon survey shows that parking turnover is a €26.4 billion Assuming 50% are card payments and average commission is 2% leads to a commission cost of €264.000.000 Standardization will provide economies of scale. Every 0,1% reduction in commission will lead to savings of €13.200.000
Depreciation savings Extending lifetime of equipment from 8 to 10 years reduces annual depreciation by 20% Equipment savings The petrol industry has managed to have POS/Unattended Payment Terminal with only ONE secured screen. Achieving the same in Parking should lead to cost reduction
Business development Enhancing the existing standards with a Tokenisation standard will allow the Card managed Drive in & drive out 13/09/13 e-‐payments for the Future 24
• Finalise and publish the « IFSF Implementa7on Guide for Parking» – Expand Use cases – Include pracBcal recommendaBons
• Develop with IFSF team a tokeniza7on standard • Set-‐up 1st level support (e.g. give advice to members) • Develop web-‐site • Set up direct support to members
– NaBonal AssociaBons – Individual organisaBons
• Maintain links with IFSF and other organisaBons
Making it happen! DELIVERABLES
RELATIONSHIPS
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Timeline
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Q3-‐2013 Q4-‐2013 Q1-‐2014 Q2-‐1014 Q3-‐2014
ImplementaBon Guide
TokenizaBon Standard with IFSF
1st Level Support
Web Site
RelaBonships
Progress report AGM 2014
V1
A significant amount of work is sBll needed from experts and the working group
V2
• e-‐payments have been a nightmare for operators; in terms of investment strategy and protecBon of the investments made.
• The EPA Board has supported the IFSF iniBaBve as we believe that it can make a significant difference to our members’ and their members
• I urge you all to make the most of this opportunity!
Nick Lester President European Parking AssociaBon
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Thank you for your aBen7on Adopt & Use the EPA/IFSF standards!
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The slides acer this point contain extra info that could be useful to understand more details
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Parking Environment & IFSF Standards
Manual Cash
IN
OUT
IFSF POS -‐ EPS IFSF Key Management
FEP
PMS Server
Door Reader
IFSF POS2FEP & Security
• Contact reader • Contactless reader • Pinpad • Controller
EPS
EPS
EPS
EPS
EPS
IFSF Host to Host
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This diagram shows the mapping of IFSF Standards within the parking environment
Other issues • Mobile payments
– Mobile payments are a misnomer. The mobile phoner is just an enabler. The payment is a CARD payment
– Mobile payment standard is being developed but based on EPC work. – DefiniBon of a payment : Payment is a movement of money between two
bank accounts : payer’s and payee’s bank accounts. – There are only three (3) ways to make a payment :
• Direct Debit • Credit Transfer • Card Payment
– Anything else is NOT a payment.
• For example, Starbuck’s mobile payment is NOT a payment. It is only the usage of funds prepaid on an account. The original transacBon of funding the account was a payment. The rest is not.
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Other issues • NFC (Near Field CommunicaBon)
– NFC, or Near-‐Field CommunicaBons, is a set of standards for smartphones and similar devices that was established to enable radio communicaBons between these terminals by touching them together or bringing them near to one another. NFC-‐enabled devices can be used in contactless payment systems similar to those currently used in credit cards and electronic Bcket smartcards, enabling mobile payments to replace or supplement these card-‐based systems.
– The economic challenge to adopBon, however, remains an obstacle: the NFC chip would need to be embedded not only within the smartphone or device, but also within the merchant’s payment terminal itself, which would end up cosBng just Tier 1 merchants tens of billions of dollars in upgrades.
– The market success of NFC also depends on the widespread embracing of a new and unfamiliar type of consumer behavior, contactless payment, which is further complicated by the fact that contactless technology right now is only being acBvely supported by a subset of smartphone manufacturers.
• But NFC and mobile transacBons are two different things. They don’t have to be linked together
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Other issues Case for TokenizaBon • Replacing cardholder data with „something else“ may limit the scope (and cost) of
PCI DSS, but it depends on exactly how it is done whether this is actually achieved or not.
• TokenizaBon can be used to minimize PCI DSS impact by: • Replacing cardholder data in logs • Systems storing cardholder data may store tokens instead and thereby be out of scope for PCI.
• TokenizaBon minimizes the number of systems required to know and handle card holder data to a centralized repository, but encrypBon can be performed at many places. It enforces secure business models.
• But the tokenizaBon system must be managed under strict procedures including Key Management processes. One of the EPA requirements is that the tokenizaBon key be shared between PEDs (PED = PIN Entry Device) (e.g: at entry and exit barriers, pay staBons etc.), door locks (may also be a PED) within a single car park and also with an internet based reservaBon system so that the same card will be recognized when booking a place online (or even paying in advance), when driving into the car park, when returning on foot and when driving out.
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